INDUSTRY NEWS

Rental car company to settle background check suit for $2.7M

Avis Budget Group reached an agreement to settle a class-action suit claiming the company improperly acquired and used background checks to reject job applicants.

The suit, which was originally filed in June 2015, alleged that Avis violated the Fair Credit Reporting Act (FCRA) by failing to provide applicants with stand-alone disclosures stating the company would be obtaining consumer reports for employment purposes.

The lead plaintiff in the class also claimed that prior to rejecting her application based on the results of her background check, Avis failed to provide her with the required pre-adverse action notice, a copy of her consumer report and a written description of her rights under the FCRA.

The agreement seeks to certify a settlement class of about 45,000 people.